Corn closes slightly higher, soybeans lower | Wednesday, August 18, 2021

Analyst asks: Will spider mites cut corn yields?

On Wednesday, the CME Group’s farm markets end mixed.

At the close, the Sept. corn futures closed 3½¢ higher at $5.61. New-crop Dec. futures ended 1¢ higher at $5.65. March corn futures settled 1¢ higher at $5.72.

Sept. soybean futures closed 10¾¢ lower at $13.58¾.

Nov. soybean futures finished 8¼¢ lower at $13.53. January soybean futures ended 8¼¢ lower at $13.53½.

Sept. wheat futures closed 2¾¢ higher at $7.37.

Dec. soymeal futures finished $2.60 per short ton lower at $360.30.

Dec. soy oil futures finished 0.64¢ lower at 61.48¢ per pound.

In the outside markets, the NYMEX crude oil market is 1.62 lower (-2.43%) at $64.97. The U.S. dollar is lower, and the Dow Jones Industrials are 384 points lower (-1.09%) at 34,958 points.

On Wednesday, private exporters reported to the USDA export sales of 131,000 metric tons of soybeans for delivery to China during the 2021/2022 marketing year.

The marketing year for soybeans began Sept. 1.

Bob Linneman, Kluis Advisors, says that grain prices have slipped lower to start the week.

“The bulls have a difficult job maintaining these price levels at this time of year. Many traders are closely watching the U.S. dollar as some chart analysis would suggest a breakout above 93.50 could translate into a bull run-up toward 97.50. The resurgence of COVID outbreaks in the news has put pressure on outside markets. If selling pressure persists in the outside markets, it will likely be difficult for the grain bulls to hold their ground. Lastly, the reports of spider mites spreading across areas of the Corn Belt is surely disheartening. Those fields that had great potential are being greatly diminished if left unchecked. This will be an issue that needs to be watched closely,” Linneman stated in a note to customers.

Linneman added, “Even though we’ve seen a string of new-crop soybean sales announced in the daily export sales reports, it is not matching the pace seen last year at this time. Granted, the marketing year for new crop is young; traders are already skeptical that we will hit the current USDA target for exports. Shortfalls in exports are likely to increase the carryout quickly, which translates to the idea that current prices are too high.”

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Tags: futures, sooy oil, corn, soybeans, NYMEX, US corn, CME Group's farm markets